The Difference between Material Handling Integrators and Material Distributors

If you deal with the sourcing raw materials such as iron and copper from manufacturers and distributors, you might have heard of the term ‘material handling integrator’. These are firms or manufacturers that deal with an entire project right from the beginning to completion. That means the client will approach them with an idea and walk away with the finished product. Distributors, on the other hand, deal only with supplying the client with a finished product directly or the raw material.

The major differences between material handling integrators and distributors can be specified by taking the following examples:

Distributors

The general flow of dealing with distributors is as follows:

Step 1: The client approaches the distributor, specifying their needs.

Step 2: The distributor askes the client what they need to supply them with. For example, a plumbing tools manufacturer will ask for a supply of steel and iron to make pipes, whereas a plumbing tools reseller will ask for plumbing pipes that they can directly sell. Different distributors deal with different goods, so a distributor for iron/steel and a distributor for finished pipes will be different.

Step 3: The distributor signs a deal with the client after talking about how much quantity needs to be supplied, the timeframe, logistics, price, etc.

Step 4: The distributor supplies the goods to the client for the duration of the contract.

Material Handling Integrators

The general flow of dealing with material handling integrators (MHI) is as follows

Step 1: The client approaches the MHI with an idea of a product.

Step 2: The MHI listens to what the client has to say, and they will specify whether they can build the product or not. For example, a plumbing reseller who wants some uniquely designed pipes and faucets will go to an MHI and ask them to build the same. A deal is signed if both parties come to an agreement on all aspects of the deal.

Step 3: The MHI chalks up designs, dimensions, and raw materials to be used for the client to approve.

Step 4: The client approves of the design, and the MHI starts mass-producing the item as per the quantity required by the client. The MHI can either do everything themselves or hire 3rd part manufacturers to share the job so that the process is faster. The MHI also get all the necessary permits, if any.

Step 5: The final goods are then readied and shipped to the client within the specified timeframe.

As we can see, the main advantage of MHI is that the client can basically get customized goods that are made specifically for them, as compared to distributors who sell standardized goods.